Indonesia’s used car market has been growing even before the pandemic hit pockets or inflation spiked. In terms of technology and the overall volume of cars produced, the Indonesian automotive sector has come a long way. Currently, Indonesia is experiencing a low car ownership rate compared to the entire household, which can be seen as an opportunity for the used car market in Indonesia. COVID-19 has given new impetus with a gap in demand and supply for new vehicles and rising costs at the same time.
economy of indonesia
Indonesia, a diverse archipelago with more than 300 ethnic groups, has the largest economy in Southeast Asia and has experienced exceptional economic development since emerging from the Asian financial crisis in the late 1990s.
In terms of purchasing power parity, Indonesia has the fourth highest population in the world and the tenth largest economy. Even though the number of COVID Delta variant cases increased mid-year in 2021, the country’s GDP continued to grow. Forecasts indicate that GDP will grow by 3.7% in 2021 and 5.0% in 2022. In addition, between 2020 and 2021, the COVID-19 fiscal response program has been strengthened from 3.8 to 4.5 % of GDP.
Automotive Market in Indonesia – Contribution to GDP
The automotive market in Indonesia contributed 4% to Indonesia’s GDP in 2021. There has been constant research and development in the country’s automotive sector as it is the major contributor to the growth of the economy.
Impact of Covid-19
New car supply and demand imbalances: Global supply chain disruptions late in the year had a greater impact on new car market sales volume than the closure of manufacturing facilities. manufacturing at the height of mobility restrictions in April/May 2020. Together with other factors, the global shortage of microprocessors was a major cause of the decline in new car supply in the second half of 2022. The desire country for used cars has been fueled by this imbalance between supply and demand, which has led to price hikes and a lack of new cars at dealerships.
Other key findings
Value-added services: the market share of used cars is increasing, so dealers are trying to attract more and more customers to it by registering as dealers and establishing themselves on different marketing platforms. e-commerce. Apart from selling vintage automobiles, they also offer value-added services.
Rising fuel prices: Due to the post-pandemic economic downturn, fewer new cars have been sold in recent years across the country. On the contrary, used car markets have grown due to the expansion of the middle class and the desire for personal vehicles due to social distancing norms. Another factor driving up used car sales is the rising cost of fuel. By lowering the used car loan amount and, therefore, the monthly payment, buyers are more likely to lower their overall car ownership costs.
More auto-classified portals: With the introduction of online classifieds portals and the severe and rigorous quality and inspection checks carried out by these portals, consumer confidence in online transactions will increase, leading to more used car purchases through online portals.
High inflation rate: compared to the previous year, the average annual inflation rate was 1.56%. Indonesia is experiencing a high rate of inflation due to supply chain disruptions and supply-demand mismatches caused by the war between Ukraine and Russia in 2022. The annual inflation rate of the country fell from 3.55% in May to 4.35% in June 2022, driving up the cost of new cars and the demand for used cars.
Makreo Research published a study on Used Car Industry in Indonesia, the report titled “Indonesia Used Car Market Revenue and Forecast to 2027” is a detailed study which offers the reader to review the expected performance past, present and future of the industry. The report discusses the growth of used car sales in Indonesia and discusses the size of the used car market in Indonesia in detail. In the presence of organized and unorganized channels, it is essential to understand the market in all possible areas, including the economy of the country, the average purchasing power, demographic distribution, government initiatives, the impact of factors external factors such as inflation, COVID-19 and others. The study helps readers better understand the used car market forecast in Indonesia.
Main topics covered
Past and present performance of the used car market in Indonesia.
Growth of used car sales in Indonesia.
The used car industry in Indonesia from a demand and supply perspective.
Key variables impacting the growth of the used car industry in Indonesia.
Performance of the Indonesian economy after the explosion of the virus?
Automotive market in Indonesia despite the slump in the global economy.
Indonesia Automotive Market Size.
Has COVID-19 been an opportunity for the Indonesian used car industry?
What are the key segments of the used car market in Indonesia?
The type of vehicle is gaining demand in the Indonesian used car market?
Who are the main market players and what is the investment scenario?
What opportunities are expected to support the used car market revenue in Indonesia in the future?
Indonesia Used Car Market Forecast.
To learn more about the publication and coverage, please see the link
or contact us:
Write: [email protected]
Office No. 30, 2nd Floor, Crystal Plaza, Hiranandani Complex,
Sec 7, Kharghar, Navi Mumbai, Maharashtra – 410210, India
Makreo is a market research and consulting company that works closely with business conglomerates around the world to help them with many aspects of growing their business and helping them make sound business decisions. using our qualitative and quantitative market insights.
Makreo specializes in breathing life into the business to rise to the highest octave with the resources available. Geography is not our limit; we have an extensive network of distribution partners in many parts of the world that expands with each new study. Our wide range of services help clients plan future growth strategies, not only in the specified industry, but also in areas where strategic planning is required for continued success.
This press release was published on openPR.